Do you see yourself in any of following mindsets?
Have you ever done or thought anything like this?
If you have not, then please stop reading since you have attained trading mastery and don’t need any words from me:
- No time to wait for setups. It looks like it might work, so I am going to get in now.
- No time to wait for this to play out, I have a small profit and it might turn around and go against me, so I am going to get out now.
- My position went against me, and it looks bad so even though it did not break support and the downfall was on light volume, I better get out now.
- The markets are running away without me. I have to find something so I can get in now. Just about anything should work and the most important issue that I don’t miss out on this great move, so I am going to just buy something now.
- This setup looks good and I just made some cash on the last two trades and am feeling pretty good, so it’s OK for me to deviate from my system, and get in now.
- I lost a lot on the last two trades, and am feeling pretty lousy about the losses so I need to get into something and maybe double up now to try to get it back now.
- I don’t have time to wait for setups since I can only trade a couple of hours in the morning before I go to work, so I have to do something now.
- I am leaving this lousy service because I want to be trading all day. The markets are here now and I want and need to be in and out of stuff all day so that I can make bank now.
- I am feeling so bored right now and just need to put on a trade in order to do something.
The list is endless, and, at its very core represents the inability to contemplate, to move at a considered pace, to wait for opportunity and to just plain have patience. At its foundation, impatience is a subset of fear and greed and is among the most common reasons for trader and investor failure.
More insidiously, the inability to be patient and wait for trades to come to you or to work out for you, coupled with the continual need to be always doing something in the markets is a form of compulsive gambling. This is a recipe of diaster for trader. Beware if you are in such condition as you are putting your financial life in danger.